Electronics Production | August 08, 2011
PKC Group with 'special measures to improve profitability'?
All in all the company's profitability is on track with profits for the period landing at 13,9 MEUR (4.4). A warning flag has still been raised for the Electronics business.
"Deliveries in the Electronics business remained at the level of the previous quarter. Deliveries from Electronics Manufacturing Services (EMS) continued to grow, but deliveries from Original Design Manufacturing (ODM) fell during the first half of the year. As a result of weakened profitability, special measures to improve profitability will be targeted at the Electronics business", writes the company. Demand for electronic subcontracting services remained at the level of the previous quarter in PKC's key markets. The availability of electronic components improved. Deliveries by PKC’s Electronics business increased over the comparison period, but failed to reach the level of the previous quarter on account of the postponement of certain customer projects. - Consolidated net sales grew 45.4% on the comparison period (1-6/2010), totalling EUR 206.2 million (EUR 141.8 million). - Consolidated operating profit was EUR 16.7 million (EUR 10.4 million) i.e. 8.1% (7.3%) of net sales. Comparable operating profit without non-recurring items was EUR 18.9 million (EUR 11.0 million), 9.2% (7.8%) of net sales. - Profit for the report period amounted to EUR 13.9 million (EUR 4.4 million). - Diluted earnings per share were EUR 0.69 (EUR 0.25). - Cash flows after investments were EUR 9.1 million negative (EUR 3.2 million negative). Gearing was 14.8% (42.1%). - Equity ratio was 54.3% (47.7%) - Net liabilities were EUR 18.7 million (EUR 37.1 million). - PKC Group announced on 28 February 2011 that it had signed an agreement for the purchase of shares in the Segu companies. The requirements of closing have been fulfilled and the closing became effective on April 30, 2011